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JDD Corporation provides the following benefits to its employee, Ahmed (age 54) Salary Health insurance Dental insurance Life insurance Dependent care Professional dues Personal use
JDD Corporation provides the following benefits to its employee, Ahmed (age 54) Salary Health insurance Dental insurance Life insurance Dependent care Professional dues Personal use of company jet $393,000 18,200 2,700 3,000 4,600 810 213,000 Assume the life insurance is a group-term life insurance policy that provides $277,000 of coverage for Ahmed. (Use EXHIBIT 12-8.) Assuming Ahmed is subject to a marginal tax rate of 32 percent, what is his after-tax benefit of receiving each of these benefits (ignoring FICA taxes)? (Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollar.) Description Amount Taxable benefits Salary Personal use of company jet $ 393,000 213,000 Taxable total $ 606,000
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